Universal Life: For most folks, there's a little confusion about what all these different variations of life insurance policies really offer.
To help such folks out, these are the basic characteristics of universal life policies...
1) You can review the face amount of your universal life insurance policy upwards or downwards to meet your changing needs.
This, however, has to be within the limits provided in the policy.
You may have to provide proof of insurability depending on the policy terms.
2) You can decide on the premium amount and payment schedule.
Just bear in mind that there may be restrictions on premiums you can choose due to tax laws.
And again, your decision has to be within the limits of the policy guidelines.
3) You have the options of a policy that has a guaranteed rate or one that is interest sensitive.
A universal life insurance policy is good for...
1) Taking care of various financial demands that may crop up within the course of a person's lifetime.
2) Ensuring a guaranteed death benefit alongside the privilege of earning more interest on its cash value.
Place take note that a universal life insurance policy is an interest sensitive policy.
This means that you agree to bear part of the investment risk.
Your policy's death benefit and cash value could be eliminated in the future due to a combination of low interest rates and the rising cost of insurance.
However, some universal life policies usually have guaranteed cash values.
Just make sure you know what yours offers.
Also note that your premium may be increased to keep your policy in force due to rising cost of insurance as you get older and situations where projected returns aren't met.
It's, therefore, a good idea to check the guaranteed section of your policy.
You should get annual statements showing insurance protection accrued, cash values and paid interest rates.
The interest rates will vary annually or even more frequently.
The statement spells out clearly how much of your premium money goes towards your insurer's administrative fees and which part goes towards buying your insurance coverage.
Pay less for a universal life insurance policy by getting and comparing quotes from at least three reputable quotes sites that return universal life insurance quotes.
To help such folks out, these are the basic characteristics of universal life policies...
1) You can review the face amount of your universal life insurance policy upwards or downwards to meet your changing needs.
This, however, has to be within the limits provided in the policy.
You may have to provide proof of insurability depending on the policy terms.
2) You can decide on the premium amount and payment schedule.
Just bear in mind that there may be restrictions on premiums you can choose due to tax laws.
And again, your decision has to be within the limits of the policy guidelines.
3) You have the options of a policy that has a guaranteed rate or one that is interest sensitive.
A universal life insurance policy is good for...
1) Taking care of various financial demands that may crop up within the course of a person's lifetime.
2) Ensuring a guaranteed death benefit alongside the privilege of earning more interest on its cash value.
Place take note that a universal life insurance policy is an interest sensitive policy.
This means that you agree to bear part of the investment risk.
Your policy's death benefit and cash value could be eliminated in the future due to a combination of low interest rates and the rising cost of insurance.
However, some universal life policies usually have guaranteed cash values.
Just make sure you know what yours offers.
Also note that your premium may be increased to keep your policy in force due to rising cost of insurance as you get older and situations where projected returns aren't met.
It's, therefore, a good idea to check the guaranteed section of your policy.
You should get annual statements showing insurance protection accrued, cash values and paid interest rates.
The interest rates will vary annually or even more frequently.
The statement spells out clearly how much of your premium money goes towards your insurer's administrative fees and which part goes towards buying your insurance coverage.
Pay less for a universal life insurance policy by getting and comparing quotes from at least three reputable quotes sites that return universal life insurance quotes.
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